Global COVID-19 intensifies and deteriorates: market sentiment is suddenly impacted! ? First event of Super Week: The Federal Reserve meets today!

European markets on Tuesday (April 27) on the cautious global market risk sentiment, most European and US stock markets under pressure, the main European stock indexes all fell. On the currency front, the dollar index traded higher, briefly breaking the 91 mark, while the euro/dollar traded around 1.2080. Spot gold hovered around 1780. The severity of the global COVID-19 epidemic, particularly the surge in new confirmed cases in India, has raised concerns about investors’ confidence in the economic recovery, the analysis said. Right now, the market is focused on the Fed decision, Powell press conference; US President Joe Biden’s Joint Meeting Speech, US First Quarter GDP Preliminary Data, PCE Price Index and other important events, will set off a wave of violent fluctuations!

EUROPEAN AND U.S. MARKETS: Despite better-than-expected quarterly results from FTSE 100 companies, European stocks were under pressure Tuesday morning, according to Yahoo Finance.

In London, the FTSE 100 and France’s CAC were flat as of 11.30am. Germany’s DAX index edged down 0.3 percent. On Tuesday morning, FTSE 100 companies HSBC and BP drove earnings above expectations. Shares of BP PLC led the index higher after opening more than 2.5 percent higher.

HSBC reported pre-tax profits of $5.78 billion for the first quarter of 2021, up 79% from $3.21 billion in the same period last year. Despite the good results, the bank said there was a “high degree of uncertainty”.

High oil prices helped support BP’s outlook — the oil giant said it would start buying back shares in the second quarter. “We are now entering earnings season, with 173 S&P 500 companies reporting this week, and they account for about half of the total market capitalization.” “Said Neil Wilson, chief market analyst at Markets.com.

“So far, so good: among the companies that have reported, revenues are up an average of 10 per cent, while earnings are up a third. Fuelled by a combination of massive fiscal stimulus, very loose monetary policy and a cyclical rebound on an epic scale led by vaccines, this is a stunning turnaround from last year’s pandemic fiasco.”

On a global basis, Yahoo Finance noted that the new blockade in Turkey and the worsening COVID-19 situation in India could shake investor confidence. Oil prices fell Monday on the prospect of new restrictions in India. India is one of the world’s largest oil importers.

The number of confirmed cases and deaths reported in India is “grossly underestimated” and the actual number of infections may be 20 to 30 times higher than official reports, WHO chief scientist Sumya Swaminathan said in an interview on Tuesday. Experts say the average positive rate in India is around 15%# and in Delhi it could be “30% or higher.”

On April 26, Turkish President Recep Tayyip Erdogan announced that a total lockdown will be imposed from April 29 to May 17 in order to curb the spread of COVID-19. During the lockdown, face-to-face classes in schools will be stopped and cross-provincial travel will continue to be restricted. But the manufacturing and food industries are not restricted.

This is the first time Turkey has imposed a complete lockdown since the outbreak began in March last year. The recent situation of the epidemic in Turkey is serious, with the number of cases climbing to more than 60,000 at one point.

On April 14, the authorities began to implement more stringent measures, such as extending the “foot ban” and banning the use of food in restaurants. At the time, Mr. Erdogan said tougher measures would be taken if the situation did not improve significantly in two weeks.

The Fed’s two-day meeting starts on Tuesday, and investors don’t expect it to make much of a stir, but will be watching for any signals from Powell about tapering the bond purchases…

Most of the major Asian stock indexes fell. Hong Kong’s Hang Seng lost 0.2 per cent and the Shanghai Composite lost 0.1 per cent. Japan’s Nikkei index fell 0.5 percent after strong gains on Monday. Market reaction was muted after the BoJ kept interest rates on hold at minus 0.1 per cent overnight.

In currencies, FX168 previously reported that after hitting a monthly low around 90.70 at the start of the week, the DXY now looks set to continue this week’s positive trend and inching closer to the key 91.00 level.

In the first half of the week, stable US bond yields and increased risk aversion to the surge in coronavirus cases appeared to provide fresh support for the dollar, analysts said.

Technically, a break above 91.67(50-dma) will open the door to 92.04(200-dma) for 93.43. On the other hand, the next support is at 90.68, the break will dip to 89.68, then 89.20.

Spot gold prices hovered near 1780. The dollar index has recovered slightly, as have bond yields. This for gold, is to suppress. This week’s Fed interest rate decision is not expected to have policy changes, but Fed Chairman Colin Powell’s speech will undoubtedly remain the focus of the market.

Some analysts say the most likely scenario is that everything stays as it is, and that it would be difficult for the Fed to move any more dovish. However, any hawkish signal should be negative for gold and trigger some aggressive selling, FX168 has also previously reported.

Technically, the MACD is bullish and gold can break through the key horizontal support of monthly support and multiple levels since February 19, which should point gold bulls towards $1800.

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